Prices of new flats in Brno continued to rise in Q2 this year, despite the fact that there were three times more vacant flats on offer than a year ago. The average price of a square meter in a new building increased by 17 percent year-on-year to CZK 132,500. This follows from the analysis of the new housing market published by the director of Impera Styl, František Šudřich. Impera Styl has been preparing the market analysis regularly since 2015.
“At the beginning of the summer, there are 1,220 vacant flats in the offers of Brno developers. This is almost three times more than a year ago. affordable housing to expand,” said Šudřich.
While a year ago those interested in buying a new apartment could choose from 440 vacant apartments, this year there are 1220 of them in 50 development projects. However, the price of new housing is not falling anyway, although for a long time the limited supply of new buildings was one of the reasons why the average price per square meter grew.
In the 2nd quarter of last year, an average square meter in a new apartment cost CZK 113,000, this year the average price rose to 132,500 crowns per square meter. The most expensive are, on average, one-room apartments, where the price per square meter climbs up to CZK 135,000.
“You can buy an average new studio apartment in Brno for CZK 4,850,000. Those interested will pay CZK 7,300,000 for a two-room apartment. If the buyer requires three rooms, the average price already climbs over CZK 10,000,000.
Buyers’ interest in smaller flats continues, and demand for one-bedroom and two-bedroom flats represents 75 percent of all transactions. At present, however, rising interest rates may dampen demand.
Further construction of new housing in Brno may be complicated by the revision of the zoning plan, which the deputies approved last week. Investors estimate the approval period of the new zoning plan to be one to three years.
Source: Impera Styl and CTK
